Consumers feel more confident

January 27, 2010|By From news services

Consumer confidence rose past expectations in January, the third consecutive monthly increase, as Americans begin to feel slightly better about business conditions and the job picture, according to a survey released Tuesday.

The Conference Board's Consumer Confidence Index increased to 55.9 -- the highest in more than a year, but still relatively gloomy. That compares with 53.6 in December.

January's index was better than the expected 53.5 forecast by economists.

The new figures don't point to an end to the nation's economic woes any time soon.

"Consumers' short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months," Lynn Franco, director of The Conference Board's Consumer Research Center, said in a statement. While consumers were less dire about their income prospects, "the number of pessimists continues to outnumber the optimists," Franco said.

Job security is a vital part of how Americans view the economy. Those who feel better about their jobs feel more comfortable spending money, which in turn fuels the nation's economy. That means without a meaningful increase in Americans' faith that their paychecks will keep coming there's unlikely to be any strong revival in the economy.

The Consumer Confidence Index hit a historic low of 25.3 in February after registering 37.4 last January.